Cooling RE Market Could Shrink Property Values

A recent report by Pimco shows US real estate prices could fall as much as 5% within the next 12 months.

Slowing growth in China, coupled with low oil prices and dislocated debt markets, threaten to halt six years of price growth, Bloomberg reports. On the plus side, this could spice things up for nimble investors.

The US has seen a surge in property demand from global investors coming out of the Great Recession—but as regulations continue to tighten and debt matures Pimco portfolio managers John Murray and Anthony Clarke project prices will fall, creating attractive opportunities for homebuyers to grab properties at bargain prices.

“For flexible capital, this storm might be a welcome one indeed,” the report states. [Bloomberg]

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